Page 1118 - Week 03 - Thursday, 26 February 2009
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Before we discuss the amendments, I think it is important to consider again the objectives of the scheme as set out in the act. The act states that the objectives of the scheme are to:
a) Promote the generation of electricity from renewable sources;
b) Reduce the ACT contribution to human-induced climate change;
c) Diversify the ACT energy supply; and
d) Reduce the ACT’s vulnerability to long-term price volatility in relation to fossil fuels.
These objectives build on those set out in the 2007 feed-in tariff discussion paper, which obviously include reducing greenhouse gas emissions by lessening reliance on non-renewable sources, increasing investment in renewable energy infrastructure, accelerating the uptake of renewable energy technologies and stimulating greater innovation in renewable energy technologies. Other objectives include reducing distribution loss factors associated with the flow of electricity through the distribution network and reducing the amount of energy required to be purchased from the wholesale electricity market by reducing the reliance on network-delivered energy.
Another objective not highlighted to date but critical nonetheless is to stimulate the green economy in the ACT to boost our green collar jobs sector by supporting solar and other renewable energy sources to compete with non-renewable sources. The government will be closely monitoring and reviewing these objectives as we consider the second stage of the scheme, which I will discuss later.
The scheme I am proposing will pay a premium price guaranteed for 20 years for every unit of renewable energy produced from solar or wind technologies. The fact that it is a gross scheme alone will make it the most generous scheme in the country. Other jurisdictions pay only for any excess units of energy after deducting for onsite use. Other technologies may be added in the future as they are developed or achieve maturity. The length of the guarantee is also essential to give certainty to those making a commitment to the technology.
The costs of the scheme will be spread across all ACT electricity users on the basis of volume of use. Larger users of electricity will pay more and lower users pay less. I note that the Greens have an amendment in this regard. It has been a matter that the government has pursued prior to that with the Australian Energy Regulator, who is involved in determining the pass-through to distributors. It is my understanding, and it accords with the assurance I have received from the regulator, that the costs of the scheme will be passed through on a volume-of-use basis. Nevertheless, there is no harm in including such a provision formally in the legislation and the government will be supporting that amendment when we debate it later this afternoon.
Members will recall the hard work done last year by former Labor MLA Mick Gentleman in laying the framework for this scheme. Since then my department has consulted with stakeholders, industry and regulatory bodies on the processes and timing of the implementation of the scheme. The amendments I have brought forward are a result of this consultation and serve to further improve the clarity, administrative simplicity and equity of the proposed feed-in scheme.
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